Pepperfry opens talks with IKEA, hopes on becoming a 6500 cr company

Pepperfry owns 60% market share of online traffic in the furniture marketplace segment and aims on turning profitable in the next 12-18 months.

Aiming on becoming a 6500 crore company by 2020, furniture and home products marketplace Pepperfry, is betting big on in-house brands. The e-commerce portal claims that revenue of 3,000 crore will be coming from their own brands. The company managed a 1000 crore turnover in the closing of Fiscal Year 2017. Pepperfry hopes on turning profitable in coming months.

The company is reportedly also in talks with international brand IKEA, which made its own India debut this year. Chief category officer Hussaine Kesury said that the company is open to talks with the Swedish furniture major to sell its products on their marketplace. The company is planning major expansion in tier II cities and is betting on its in-house brands which currently include Woodsworth, CasaCraft, Mudramark and Mintwud, among others. Moreover, the brand Mintwud brought in a business of Rs. 225 crore gross merchandise value while contributing fifteen to twenty per cent to the overall furniture business. It visions to reach 20 million homes and expand with 80% CAGR while building brand extensions. Kesury also stated that the company at present makes 45% gross margin and are already profitable at initial levels.

Currently, Pepperfry is associated with 10,000 plus sellers and about 200 merchants in the furniture and home market. The company has in total raised Rs. 1,300 crore after it raised Rs. 250 crore in March 2018 from SSGA. The e-commerce platform also raised investment previously from Northwest venture partners, Zodius Technology Fund, Goldman Sachs and Bertelsmann India.

Pepperfry’s expansion mode will also include increase in its offline stores to over 70 by next year. Presently the company has 32 such studios and majority of new stores will be based on the franchisee model with South India being an important market.

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